Evercore ISI upgrades Netflix on declining competitive threat

The Netflix app is demonstrated on an Apple iPad mini in Tiskilwa, Illinois.

Evercore ISI raised its rating on Netflix to hold from sell, saying the firm's previous warning about increased streaming video competition in its downgrade note last year was misplaced.

"We find that much of the competition we feared seems to be gaining little traction, at least not to the degree necessary to merit the same level of concern," analyst Ken Sena wrote in a note to clients Tuesday.

"While the number of OTT SVOD services has grown rapidly, something we suspected would happen when downgrading, the traction that most of these have had has been mixed to poor."